VAT hike will change Saudi spending habits, say citizens, traders

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Thu, 2020-07-02 03:38

JEDDAH/RIYADH: Saudis on Wednesday were coming to terms with a hefty hike in the Kingdom’s value-added tax (VAT) on goods and services from 5 to 15 percent.

As citizens began looking at ways to adjust spending habits, many people told Arab News that the new tax rate would have a huge impact on their shopping behavior and would require some belt-tightening.

Rahaf Meer, a 26-year-old Saudi, said she had never been a big spender. “I only buy what I need. However, the 15 percent VAT did upset me because it is huge.